US: CEDC to offer EUR50m notes to repay debt

Central European Distribution Corporation has lined up a note offering, which it hopes will raise EUR50m (US$66.4m).

The US-based company, which operates primarily in Eastern Europe, said earlier today (6 December) that it intends to offer EUR50m aggregate principal amount of its 8.875% euro-denominated senior secured notes due in 2016. The notes will be part of the same class as the existing EUR380m of 8.875% notes, which were issued by CEDC a year ago.

"The company intends to use the net proceeds from the notes offering to repay existing short-term debt under bank credit facilities of an operating subsidiary of the company," CEDC added.